Bachelor
2021/2022
Valuation of the Company
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
4 year, 1, 2 module
Mode of studies:
distance learning
Online hours:
12
Open to:
students of one campus
Instructors:
Vitaliy Dyachenko,
Svetlana Grigorieva,
Nikita Pirogov,
Dmitry Poduhovich,
Irina Skvortsova
Language:
English
ECTS credits:
5
Contact hours:
56
Course Syllabus
Abstract
The course will introduce students to the most frequently used quantitative valuation techniques. The main topics covered include (1) discounted cash flow methods (2) relative valuation using multiples (3) asset-based approach. Particular attention is paid to evaluation of individual groups of assets under the net asset value method: financial assets, real estate, tangible real property, intangible assets. The focus of the course is on the evaluation of companies in emerging capital markets. Students will learn how to conduct firm valuation in terms of high levels of macroeconomic uncertainty, illiquid capital markets, and high levels of political risks. Participants are provided with the opportunity to work in small teams and value different groups of assets and firms in emerging capital markets. The course is blended and consists of lectures along with seminars with lecturers from School of Finance and E&Y and online video lectures from the University of Illinois at Urbana-Champaign and Stern School of Business. Ссылка на онлайн-курс:https://www.coursera.org/learn/ocenka-stoimosti-kompanii/
Learning Objectives
- The key goal of this course is to provide students with sufficient theoretical knowledge and practical experience to be able to value a company using three traditional approaches (income approach, market approach, asset-based approach).
Expected Learning Outcomes
- apply different valuation techniques such as Dividend-models, FCFF, FCFE, relative valuation and asset based valuation
- apply the primary methods to measure value of different groups of company assets
- identify and analyze a company’s value drivers and relate these drivers to the value enhancement process
- understand the features of corporate valuation in emerging capital markets
- understand the importance and apply the discounts and premiums in business valuation (control premium, discount for lack of control, discount for lack of marketability)
- understand the main steps of business valuation
Course Contents
- Introduction to Valuation
- Income approach: discounted cash flow methods, capitalization method
- Market approach: public company method, merger and acquisition method.
- Cost approach: overview, individual asset valuation procedures – intangible assets
- Cost approach: individual asset valuation procedures – real estate, machinery and equipment
Assessment Elements
- Class participation
- Team projectsThere will be two cases and one analytical task during the course
- Final exam (remotely)Online with proctoring
Interim Assessment
- 2021/2022 2nd module0.5 * Final exam (remotely) + 0.36 * Team projects + 0.14 * Class participation
Bibliography
Recommended Core Bibliography
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset (Vol. 3rd ed). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442924
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset, University Edition (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442925
- Hitchner, J. R. (2017). Financial Valuation : Applications and Models (Vol. Fourth edition with website). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1506670
- Mard, M. J., Hyden, S. D., & Hitchner, J. R. (2007). Valuation for Financial Reporting : Fair Value Measurements and Reporting, Intangible Assets, Goodwill and Impairment (Vol. 2nd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=218516
Recommended Additional Bibliography
- King, A. M. (2006). Fair Value for Financial Reporting : Meeting the New FASB Requirements. Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=159616
- Pereiro, L. E. (2006). The practice of investment valuation in emerging markets: Evidence from Argentina. Journal of Multinational Financial Management, (2), 160. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.a.eee.mulfin.v16y2006i2p160.183
- Pratt, S. P., & Niculita, A. V. (2008). Valuing a Business : The Analysis and Appraisal of Closely Held Companies (Vol. 5th ed). New York: McGraw-Hill Professional. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=219493